The Federal Reserve Board on Tuesday announced the termination of an enforcement action levied in 2010 against First Southwest Bancorp of Alamosa, Colo.
The October 2010 written agreement between First Southwest Bancorp, the holding company for $234 million-asset First Southwest Bank, and the Federal Reserve Bank of Kansas City stipulated several compliance requirements for First Southwest.
First Southwest was ordered to increase board oversight and get written approval from the Fed before declaring, taking or paying any dividends. It was also required to receive written approval before incurring, increasing or guaranteeing any debt or purchasing or redeeming any shares of stock and to submit a yearly cash flow projection at least one month prior to the beginning of each calendar year starting in 2011.
The agreement also set provisionary compliance guidelines specific to any changes in executive officers and required the company to submit written compliance progress reports at the end of each quarter.